TOPIC

FORMULATING AND ANALYZING THE

ORGANIZATIONS VISION AND MISSION

LEARNING OBJECTIVES

At the end of this topic, the students should be able to:

1. Define and differentiate Mission and Vision Statements;
2. Identify the elements and characteristics of Mission and Vision;
3. Learn the process on how to write an effective Vision and Mission Statements;
4. Identify the different areas of strategic objectives; and
5. Formulate a good mission and vision statements.

TOPIC OUTLINE

A. Definition
a. Mission Statement
b. Vision Statement
B. Comparison of Vision and Mission Statements
C. Elements of a Mission
D. Process of Developing a Vision Statement
E. Process of Developing a Mission Statement
F. Importance of Mission and Vision Statements
G. Characteristics of a Good Mission and Vision
H. Areas of Strategic Objectives

INTRODUCTION
 Businesses that succeed create a kind of company that employees and customers
are proud to associate with. The companys vision and mission have a great role in creating
a business successful. Mission, vision, and values are the guiding stars that no matter which
way you veer - these serve as fixed navigation points.
A mission statement is intended to clarify the what and who of a company, while
a vision statement adds the why and how as well. These two statements clearly define
the organizations reason for existing and outlook for internal and external audiences like
employees, partners, board members, consumers and shareholders.
However, some organizations use these terms interchangeably. They write mission
statements when in fact they are actually making vision statements. This discussion is to
analyze and identify the distinction between the two statements including its elements,
characteristics, steps in formulating these statements and other related topics.

DISCUSSION

DEFINITION OF TERMS

A Mission Statement defines the companys business, its objectives and its
approach to reach those objectives. It is written declaration of an organizations core
purpose and focus that normally remains unchanged over time. The mission statement
guides the day-to-day operations and decision-making of the organization. It helps the
members of an organization get on the same page on what they should do and how they
should do it.

A Vision Statement describes the desired future position of the company. It is a

picture of the preferred future. It outlines the worldview of the organization and attracts
people who believe in the vision of the organization.

MISSION VS. VISION

MISSION STATEMENT VISION STATEMENT

 - talks about HOW you will get to - outlines WHERE you want to
where you want to be be
about - defines the purpose and primary - communicates both the
objectives related to your purpose and values of your
customer needs and team values business
What do we do?
answers the
How do we do it? Where do we aim to be?
question
For whom do we do it?
time Present Future
- lists the broad goals for which
the organization is formed - lists where you see yourself
- prime function is internal; to some years from now
function define the key measure(s) of the -inspires you to give your best
organizations success and its - shapes your understanding
prime audience is the leadership, why you are working here
team and stockholders
As your organization evolves,
- may change, but it should still tie
you might feel tempted to
back to your core values, customer
change your vision.
change needs and vision
Mission or vision statements explain your organization's
foundation, so change should be kept to a minimum.
Where do we want to be going
forward?
developing a Why do we do what we do?
When do we want to reach that
statement What, For Whom and Why?
stage?
How do we want to do it?
- Purpose and values of the
organization
- Clarity and lack of ambiguity
- What business the organization
- Paint a vivid and clear picture,
wants to be in or who are
not ambiguous
organization's primary "clients"
- Describe a bright future
features of an (stakeholders)?
- Memorable and engaging
effective What are the responsibilities of
expression
statement the organization towards these
- Realistic aspirations,
clients?
achievable
- What are the main objectives
- Alignment with organizational
that support the company in
values and culture
accomplishing its mission
Which comes first?

ELEMENTS OF A MISSION
 1. Purpose
Why does the company exist? What your business is doing right now that
sells itself apart, and gives beyond providing goods and services.
2. Strategy
A companys mission provides the commercial logic for its existence, and
this help define its entire business as well as its competencies, and how it plans to
compete in the marketplace.
Part of the strategy is the product and services, key market and the
distinction of an organization.
Product and services offered by an organization is an important element
under the strategy.
Key market is the target clients of the organization. The question who are
your customers? is associated to this.
Distinction related question is What makes your product/service unique so
that the client would choose you?
3. Inspirational
The terms used in a mission statement should be simple and easy to
understand in order for the customers and employees in the organization can
comprehend it easily.
The mission statement should be inspiring and motivating, since part of its
function is to recalibrate and re-energize; which is particularly important when
things go wrong, when obstacles emerge, and so on.
4. Legacy
A mission statement should capture the spirit and essence of the business
legacy. What are you known for in the community and more importantly, what do
you want to be known in the years ahead. Legacy is one benefit of the organization
for satisfying the customers needs because the people will care about you and
patronize your organizations product and services offered.

PROCESS OF DEVELOPING A VISION STATEMENT

Step 1: What is a Vision Statement?

Before you can write your vision statement, it's a good idea to know what you're
working on. A vision relates to seeing and looking. So vision statements are about looking
ahead. It outlines how you help people, the value you offer to the world, and what you plan
to achieve as a business.
 A vision statement can be between one line and several paragraphs long. It provides
direction and inspiration for your company. It sets out your most important goals, but
doesn't include a practical plan to achieve those goals. Ideally, a vision statement should
be written in ordinary, everyday language that is meaningful to you, your customers, and
your employees. Where possible, avoid business jargon.
A vision statement is:
Aspirational in that it's about your goals.
Inspirational in that it provides life and direction to your day-to-day work.
Motivational in that it provides a reason for the work you do.
Step 2: Revisit Your Strategic Plan
Goals are a key part of your vision statement. Only include the business goals that
reflect the essence of your business. For the purpose of your vision statement, it's a good
idea to look for patterns in your goals and combine them into a single aspiration. The down-
to-earth part of how you'll achieve this big goal comes later, in your mission statement.
Your vision statement can include maintaining your current strengths or taking advantage
of new opportunities.
Your business story gives your business an identity. Your story may not be explicit
in your vision statement, but it should be present, supporting your vision statement.
Step 3: Make a Vision Board
Everything you've collected from your strategic plan forms your vision board. This
is the mixing pot out of which you'll write your vision statement.
You can expand on your vision board by writing detailed answers to the following
questions:
Who does your business help?
What's the purpose of your business?
How do you want to make the world a better place with your business?
What problems does your business solve?
What's your ultimate aim for your business?
Step 4: Distill to the Essentials
You've collated a ton of information in your vision board. Work through everything
you've collected, and discard anything that's not absolutely core to your business. You will
need to be ruthless. Remember that anything you discard can form part of your business
plan.
After you've finished this step, you'll have the skeleton of your vision statement.
Step 5: Write
 Take the skeleton of your vision statement, and craft it into something special.
Use short words and sentences to keep it engaging.
Limit yourself to concrete language.
Focus on what your business does for others - how you help your customers and
inspire your employees.
Step 6: Ask for Feedback
Take what you've created to ask others what they think. Get feedback from
your mastermind group, your customers, your employees, and friends and family. Ask
everyone to be honest, but bear in mind that anyone you ask may be positive out of
kindness. Look for genuine enthusiasm, and beware of reserved endorsements.
After you've collected your feedback, choose the best vision statement. You don't
have to keep this forever; there's always room for improvement in the future.
Step 7: Continually Review
Your vision statement is continually up for review. That doesn't mean you need to
think about changing it every day. But it does mean that any time you think of a way to
improve your vision statement, you can update it.
Your vision statement grows with your business. If your business gets too big for
your vision statement, it's time to get a new one.

PROCESS OF DEVELOPING A MISION STATEMENT

Step 1: What is a Mission Statement?

Mission relates to doing, so mission statements are about your day-to-day
operations. A mission statement is a few short sentences or paragraphs outlining what your
business does to achieve its vision statement.
Step 2: Develop Your Winning Idea
Identify your organization's "winning idea," or unique selling proposition. This is
the idea or approach that makes your organization stand out from its competitors, and it is
the reason that customers come to you and not your competitors. Developing a "winning
idea" is a core goal of business strategy , and it can take a lot of effort to find, shape, test,
and refine it.
Step 3: Clarify Your Goal
 Make a short list of the most important measures of success for this idea. What key
performance indicator will let you know that your customers are truly satisfied? You don't
have to include exact figures here, but it's important to have a general idea of what success
looks like, so that you know when you've achieved it.
Combine your winning idea and success measures into a general, but
measurable goal . Refine the words until you have a concise statement that expresses your
ideas, measures and a desired result.
Keep this statement in the present tense, and make sure it is short, simple , clear,
and free of jargon . Yes, the language needs to be inspiring, but don't include adjectives
just so it "sounds better."
Step 4: Write Your Mission Statement
Ask yourself, What must I do to make this happen? Mission statements tend to
be customer-focused, so another way of asking the question is: What must I do for my
customers to make this vision a reality?
Step 5: Continually Review
As with your vision statement, your mission statement should be under continual
review. As your vision statement changes, your mission statement will need to change, too.

IMPORTANCE OF MISSION AND VISION STATEMENTS

MISSION
A mission is important because it defines the business products, services, and
customers. It also allows the organization to differentiate itself from its competitors.
In order for the company to have a direction, this statement is useful because it
serves as a guide for the companys entire decision making. Additionally, it helps the
workers within the organization know what decisions and tasks best align with the mission
of the company.

VISION
A vision describes how the future will look if the organization achieves its mission.
It bridges the present with the future while establishing a standard for excellence.
It inspires action. It creates the energy and will to make change happen. In addition,
it inspires individuals and organizations to commit to persist and to give their best.
It is also a practical guide for creating plans, setting goals and objectives, making
decisions and coordinating and evaluating the work on any project.
Furthermore, it helps keep the organizations and groups focused and together.
CHARACTERISTICS OF A GOOD MISSION STATEMENT

1. Make it as succinct as possible

A mission statement should be as short and snappy as possible - preferably
brief enough to be printed on the back of a business card.
2. Make it memorable
Try to make it something that people will be able to remember the key
elements of, even if not the exact wording.
3. Make it unique to you
Focus on what it is that you strive to do differently: how you achieve
excellence, why you value your staff or what it is about the quality of
experience that sets you apart from the rest.
4. Make it realistic
Remember, your mission statement is supposed to be a summary of why
you exist and what you do. It is a description of the present, not a vision for
the future.
5. Make sure its current
Though it is not something which should be changed regularly, neither
should it be set in stone. Your organization's priorities and focus may
change significantly over time. On such occasions the question should at
least be asked: 'does our current mission statement still stand?'

CHARACTERISTICS OF A GOOD VISION STATEMENT

1. Be inspirational
The vision statement is supposed to challenge, enthuse and inspire. Use
powerful words and vivid phrases to articulate the kind of company you are
trying to become.
2. Be ambitious
What targets you set and how high you aim will, in themselves, also say
something about you as an organization. Ambitious, perhaps even
audacious targets will help create the impression of an organization that is
going places, that aims high and demands high standards in a way that
comfortable, 'middle-of-the-road' benchmarks will not.
3. Be realistic
This may sound contradictory to 'Be ambitious', but it is an important part
of the balancing act that is required. For just as the purpose of the vision is
 to inspire and enthuse, it is equally important that this ambition is tempered
by an underlying sense of realism. People need to believe that what is
envisaged is actually achievable; otherwise there is no reason for them to
believe or buy in to it.
4. Be creative
Albert Einstein once said that 'imagination is more important than
knowledge.' Just as a commercial company may need to think creatively in
order to identify gaps in the market, so too you may need to think
imaginatively about what your vision is and how you describe it to help
stand out from the crowd.
5. Be descriptive
Unlike with your mission statement, there is no pressure to pare your vision
down to the bone. Of course you want to be concise but there is no need to
enforce an arbitrary limit on its length. Take as much space as you need to
get your vision across.
6. Be clear
As with your mission statement it pays to avoid jargon, keep sentences short
and to the point and use precise, uncluttered language. Otherwise you risk
diluting or losing your message amongst the background noise.
7. Be consistent
Though bearing in mind their different purposes, there should still be an
element of continuity between your mission and vision statements, or at
least some careful thought and discussion given as to why this is not the
case. At the same time, the vision need not be constrained by the current
remit of the mission.

AREAS OF STRATEGIC OBJECTIVES

Strategic objectives are goals deemed most important to the current and future
health of a business. It is one of the fundamental building blocks of a strategic plan.
Additionally, strategic objectives are long-term and should be aligned with your
organizations mission and vision. It consists of 4 areas namely: Financial, Customer,
Internal, and Innovative/Learning.
1. Financial Strategic Objectives
Common financial strategic objectives of a business include increasing revenue,
increasing profit margins, retrenching in times of hardship and earning a return on
investment.
Increasing revenue is the most basic and fundamental financial objective. Revenue
comes from an emphasis on sales and marketing activities. Companies often set revenue
goals in terms of percentage increases rather than aiming for specific dollars.
 Profit objectives are a bit more sophisticated than revenue growth goals. Any
money left over from sales revenue after all expenses have been paid is considered profit.
Profit goals are concerned first with revenue. Keeping costs low by finding and building
relationships with reliable suppliers, designing operations with an eye toward lean
efficiency and taking advantage of economies of scale, to name a few methods, can leave
you with more money after paying all of your bills.
Retrenching is marketing technique-based on a financial objective that attempts to
keep a brand alive and keep current revenue and profit levels from falling any further
during the decline stage of the product/brand life cycle.
ROI is concerned with the return generated by investments in real property and
productive equipment. It also applies to investment in stocks, bonds and other investment
instruments.

2. Customer Strategic Objectives

This strategic objective should make every customer feel valued and appreciated.
To ensure that customers have a good experience with the business and feel treated
professionally and kindly is the ultimate objective in this area. Additionally, the customer
service representation should meet or exceed customer expectations by providing
undivided attention. Instruct employees to greet customers when they enter your
establishment and to represent your company with politeness and professionalism.
Positive word-of-mouth publicity for your business is another effective strategic
objective in this area. The objective is to increase positive perception of your business and
it is accomplished through consistent levels of superior service.
3. Internal Strategic Objectives
Internal strategic objectives focus on business processes that have an impact in
creating customer value and satisfaction. Additionally, it focuses on maintaining the firms
core competencies.
Management and operational objectives are part of the internal strategic objectives.
Management objectives focus on running a major functional activity or process within a
business, such as, research and development, production, marketing, customer service,
distribution, finance, human resources and other strategy-critical activities. On the other
hand, operational objectives focus on how a company manages frontline organizational
units with a business and how to perform strategically significant operating tasks.

4. Innovative and Learning Strategic Objectives

Innovative and learning strategic objectives focus on activities that assist to improve and
build the companys value creating activities. It involves in increasing the firms
knowledge base and learning best practices so the company is continually on the cutting
edge.
SUMMARY & CONCLUSIONS

Mission statement guides the company in its operations, decision making, and other
activities to achieve the vision which is the future position of the company. Formulating
this requires a lot of time in order to come up with a purposeful, inspiring and strategic
statement which incorporates the business legacy. An effective mission statement should
be as succinct as possible, memorable, unique, realistic and reflects the current goals of the
company. It is important as it serves as a direction that lead where the companys going
and it guides its day-to-day operations because it is in fact the very reason for the existence
of the organization.
On the other hand, a vision statement is a vivid picture of the preferred future of an
organization. It should paint a clear picture of where the business is going. One must
formulate a vision that is inspirational and ambitious but is realistic and consistent with the
companys mission.
These two statements steer the direction of an organization towards its success and
is therefore continually reviewed to reassess its alignment to the short-term and long-term
goals of the organization.
Additionally, the different areas in strategic objectives help in building the mission
and vision statement of a company. The financial strategic objective which concerns the
financial needs of the company; customer strategic objectives in which customer should be
valued and appreciated; internal strategic objectives which concerns with the business
processes and maintaining the firms core competencies; and innovative strategic
objectives which focuses on the activities that helps the company improve and continually
be on the edge are areas to be considered in order for the company to view all the aspects
of the business before creating the mission and vision statements.
An in-depth understanding about the subject will be a great help for us, business
students, to apply these learnings in the formulation and analyzation of an organizations
mission and vision for our own businesses in the future and into our personal lives as well.

\ REFERENCES

http://smallbusiness.chron.com
http://yourbusiness.azcentral.com
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statements.aspx
http://www.businessdictionary.com/definition/mission-statement.html
http://www.glennsmithcoaching.com/mission-vs-vision-whats-difference/
https://www.psychologytoday.com/blog/smartwork/201004/vision-and-mission
http://www.diffen.com/difference/Mission_Statement_vs_Vision_Statement
http://managementhelp.org/blogs/strategic-planning/2013/01/30/theres-a-difference-
mission-v-vision/
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https://www.cartridgeworld.com/for-your-business-tips/mission-statement/

ATTACHMENTS

Assessment Exercise
In-class Activities
Video Clip
Power point Presentation